XN000022-1993-04-21 — Page 15

WEDNESDAY, APRIL 21, 1993

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IT WOULD EXTEND TO SUCH DRIVERS OF MOTORCYCLES AND MOTOR TRICYCLES THE EXEMPTION FROM VEHICLE AND DRIVING LICENCE FEES NOW APPLICABLE TO DISABLED DRIVERS OF CARS.

THE THIRD BILL IN THE PACKAGE IS THE CROSS HARBOUR TUNNEL (PASSAGE TAX) (AMENDMENT) BILL 1993.

THE BILL WOULD PROVIDE THAT ANY DISABLED PERSON WHO CAN SATISFY THE COMMISSIONER FOR TRANSPORT THAT HE REQUIRES, AS A DRIVER OF A MOTORCYCLE OR MOTOR TRICYCLE, TO MAKE USE OF THE CROSS HARBOUR TUNNEL, WILL BE EXEMPT FROM THE PAYMENT OF THE TUNNEL TAX.

ON THE INLAND REVENUE (AMENDMENT) (NO.2) BILL 1993, MR YEUNG SAID THE PURPOSE WAS TO INTRODUCE A SYSTEM OF COMPOSITE TAX RETURNS, OR CTR'S, WITH EFFECT FROM APRIL 1, 1994.

A CTR WILL BE A SINGLE RETURN COVERING ALL TAXES LEVIED UNDER THE INLAND REVENUE ORDINANCE.

NOW

"ITS INTRODUCTION WILL SIMPLIFY PROCEDURES FOR TAXPAYERS WHO HAVE TO FILL IN TWO OR MORE TAX RETURNS FOR THE INLAND REVENUE DEPARTMENT, AS WELL AS ALLOWING RE-DEPLOYMENT OF RESOURCES WITHIN THE DEPARTMENT TO HELP TO COMBAT TAX AVOIDANCE AND EVASION, HE SAID.

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HE ASSURED MEMBERS THAT THE INTRODUCTION OF CTR'S WOULD AFFECT NEITHER THE RATES OF TAX NOR THE AMOUNTS PAYABLE.

HE SAID.

"ITS PURPOSE IS SIMPLY TO MAKE LIFE EASIER FOR ALL CONCERNED,

THE INLAND REVENUE (AMENDMENT) (NO.3) BILL 1993 PROVIDES THAT WHERE A RELEVANT PAYMENT IS DERIVED FROM AN ASSOCIATE, THE FULL AMOUNT (RATHER THAN THE PRESENT 10 PER CENT) WOULD BE TREATED AS ASSESSABLE PROFITS.

TO PREVENT REVENUE LOSS, THE BILL WOULD TAKE EFFECT FROM THE DAY FOLLOWING THE BUDGET SPEECH, THAT IS MARCH 4.

MR YEUNG SAID THE BILL COULD NOT ADVERSELY AFFECT THE LEGITIMATE IMPORTATION OF TECHNOLOGY INTO HONG KONG. THERE ARE TWO REASONS.

WHERE

FIRST, THE AMENDMENTS ARE ONLY DIRECTED AT ARRANGEMENTS ASSOCIATED PARTIES ARE INVOLVED. SECOND, THE MEASURES SHOULD NOT RESULT IN ANY GENERAL INCREASE IN COSTS TO NON-RESIDENT TECHNOLOGY EXPORTERS OR TECHNOLOGY USERS IN HONG KONG.

"THIS IS BECAUSE HONG KONG TAX PAID BY A NON-RESIDENT WILL GENERALLY GIVE RISE TO A FOREIGN TAX CREDIT IN HIS HOME COUNTRY, ADDED.

"

HE

DEBATES ON THE BILLS WERE ADJOURNED.

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